Case Study III

The Situation

Client was looking for opportunities to diversify out of their traditional businesses, which were showing declining growth and profitability Their consultants had prepared feasibility and market research studies They were advised to enter a "hot" new sunrise industry The potential, projections and future profits were fantastic, in fact, almost too good to be true. They wanted to gauge the competitive scenario in the sunrise industry

The ValueNotes Solution

ValueNotes found that the future potential was huge Capital requirements were larger than anticipated. Too many others had the same idea, and competition was likely to be intense. The market would take much longer to develop than had been assumed. Client had no real strengths or advantages to be able to compete effectively in the chosen market.

The Result

The client pulled out of the project, and today is thankful that they did so. Scores of others have burnt themselves slugging it out in the "hot" sector.